Investors in Quindell (QPP) may have rubbed their eyes in disbelief after shares in the embattled insurance technology group climbed 4 per cent on the back of these first-half figures. Indeed, there was the revelation days earlier that a law firm and its clients could sue Quindell for up to £18m, not to mention the ongoing Serious Fraud Office (SFO) investigation. Perhaps new chief Indro Mukerjee has swayed sentiment - or the planned £500m return of cash to shareholders from the sale of the professional services division may be too hard to resist.
Management blamed a 3 per cent dip in sales of insurance technology solutions on the tarnished Quindell brand, and continues to face "ongoing reputational issues". Revenues from other technology and property services slumped 35 per cent to £8.7m, partly due to reduced government subsidies for cavity wall insulation. The upshot was that Quindell's adjusted cash loss more than doubled to £15.8m.
Nonetheless, investors can breathe a cautious sigh of relief: management hasn't spotted any problems requiring disclosure beyond those laid out in its full-year release. Mr Mukerjee aims to strengthen governance, staunch the group's losses quickly and lay the groundwork for future growth. He hopes to begin detailing the group's future strategy in the coming months.
| QUINDELL (QPP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 99.8p | MARKET VALUE: | £444m | |
| TOUCH: | 99.5-100p | 12-MONTH HIGH: | 177p | LOW: 25p |
| DIVIDEND YIELD: | 0.1% | PE RATIO: | na | |
| NET ASSET VALUE: | 156p* | NET CASH: | £543m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 (restated) | 42.8 | -35.7 | -7.2 | nil |
| 2015 | 35.3 | -35.5 | -7.3 | nil |
| % change | -18 | - | - | - |
*Includes intangible assets of £157m, or 35p a share | ||||
